Thread Tools

Anyone getting in on the Facebook IPO? I'm not for one reason only...and that reason is because the media has given this IPO the "full-court press" treatment and investment advisors are trying to leverage that to sell people this over-inflated IPO.

Look the history of all social media sites and think long & hard about jumping on-board. "MySpace".....man, that was huge for a while. And how's it going with Myspace today folks?

I think sites like Linkedin have more long-term potential than Facebook. But that's just my opinion.

To date, Facebook hasn't shown any consistency in generating profits. So why has this IPO become such a mega-event?

Greed...pure greed folks.

It's like the popularity of the lottery since the great recession began. Sales have been through the roof. Millions are looking for the easier, softer way to riches and all that comes with it...good for them...let em have their broken dreams. The stock market isn't a lottery.

Anyone getting in on the Facebook IPO? I'm not for one reason only...and that reason is because the media has given this IPO the "full-court press" treatment and investment advisors are trying to leverage that to sell people this over-inflated IPO.

Look the history of all social media sites and think long & hard about jumping on-board. "MySpace".....man, that was huge for a while. And how's it going with Myspace today folks?

I think sites like Linkedin have more long-term potential than Facebook. But that's just my opinion.

To date, Facebook hasn't shown any consistency in generating profits. So why has this IPO become such a mega-event?

Greed...pure greed folks.

It's like the popularity of the lottery since the great recession began. Sales have been through the roof. Millions are looking for the easier, softer way to riches and all that comes with it...good for them...let em have their broken dreams. The stock market isn't a lottery.

This opinionated post brought to you by PatriotsReign

Click to expand...

PR - not sure if you are familiar with the concept of "Infographics" but at the link below is one done on Facebook.

While I personally will not be buying the stock, it's hard to argue of the power of it. It is a way of life (for better or worse) for a lot of people; mostly the younger generations.

I will also note that I can't remember and IPO drawing as much attention as this one is, in my life time. I mean CNBC has all of their shows today basically dedicated to it.

Pretty impressive numbers for sure...but right now, Facebook is basically the only game in town (really, really big town). Will someone else come along to tear into their market share? Eventually, yes, beyond a doubt, yes, they will.

Like I wrote, my opinion is that Facebook is over-valued...but only time will tell. It will be interesting to see where they are 5-8 years from now.

I'll also add that I do not get the obsession with telling the world everything you're doing & thinking....very, very sad to me.

Pretty impressive numbers for sure...but right now, Facebook is basically the only game in town (really, really big town). Will someone else come along to tear into their market share? Eventually, yes, beyond a doubt, yes, they will.

Like I wrote, my opinion is that Facebook is over-valued...but only time will tell. It will be interesting to see where they are 5-8 years from now.

I'll also add that I do not get the obsession with telling the world everything you're doing & thinking....very, very sad to me.

Click to expand...

I agree. I joined when I was in college (originally you had to be in a set number of schools to join). When it started you could put in your college class schedule and you could see who else on thefacebook (as it was known at the time) were in your classes. I used it to connect for notes if I missed a class or test prep.

Nowadays that use is gone and it has evolved completely. Couple Facebook with a smartphone and it literally consumes some people's lives. My sister can't be without her phone for fear of missing something.

I don't get it. But as they say, different strokes for different folks. I much prefer connecting in real life, and I don't need to know what you did today, everyday. And we all know "you" dont have 896 friends

I don't understand the way some folks use it, either, but as has been said, to each their own.

I will say that it is a very good way to re-connect with people from your past.

Click to expand...

I agree Chico. Many people I knew in HS, who would have otherwise disappeared from my life into anonymity after we all went our separate ways post graduation, I have maintained a line of communication with because of the Book of Face.

I got a teeny tiny allocation of the IPO so you can be sure I jumped on it. It's pretty easy money and a virtually risk free investment. I'll probably sell sometime within the next week and just take the short term gain (and the higher tax rate) instead of holding them for a long term gain.

EDIT: When it opened lower than I thought it would, I got out immediately. I made money, but nowhere near as much as I hoped.

They were saying on the radio today that Bono, of U2, runs what was considered the dumbest venture capital group in the world; but somehow they inadvertently* invested 90 million in Facebook in 2009. so Bono's going to end up as the richest entertainer in history by the end of the week. He'll pass Paul McCartney at just over a billion and end up somewhere north of that.

They were saying on the radio today that Bono, of U2, runs what was considered the dumbest venture capital group in the world; but somehow they inadvertently* invested 90 million in Facebook in 2009. so Bono's going to end up as the richest entertainer in history by the end of the week. He'll pass Paul McCartney at just over a billion and end up somewhere north of that.

*I don't know how that's possible either.

Click to expand...

There is a write up on this exact thing on CNN right now if you would like more detail (although not much more).

Facebook is declining in the USA ... a huge financial market. it is growing in less developed countries. My unprofessional guess is that it will be worth the most at this sale. It will decline from there to it's true earnings level over the next 5 years. It's popular but it is not exclusive at this point and won't be anytime soon.

Facebook might be ok as a short term investment, but I would not take it long term. They have already stated that all personal information on facebook is for sale to the highest bidder(s). Plus, now they will have stockholders to please and make money for.

Not only that but there are people out there mining data from facebook all day every day. At some point something bad will happen with this data and if it happens when a real competing product is available it will hurt facebook in a big way.

With the monetary success of facebook it is sure to spawn some well funded competion.

They were saying on the radio today that Bono, of U2, runs what was considered the dumbest venture capital group in the world; but somehow they inadvertently* invested 90 million in Facebook in 2009. so Bono's going to end up as the richest entertainer in history by the end of the week. He'll pass Paul McCartney at just over a billion and end up somewhere north of that.

*I don't know how that's possible either.

Click to expand...

what program were you listening to?

Assuming you're referring to Elevation, (i) Bono is an "MD" but doesn't run it, (ii) those guys are far from dummies and (iii) no way their stake was "inadvertent."

With this sort of user activity, large media companies are looking at this IPO.
I wouldn't be shocked to see a company like, The Walt Disney Company, Time Warner, Viacom and News Corporation finding a way to be a controlling partner in Facebook.

For media giants, facebook doesn't need to make money, it just has to be able to advertise the media giants other products, and if it is capable of doing so it would save them billions in the long term, with a chance that they can corner a market of young peoples who don't use other media outlets.

With this sort of user activity, large media companies are looking at this IPO.
I wouldn't be shocked to see a company like, The Walt Disney Company, Time Warner, Viacom and News Corporation finding a way to be a controlling partner in Facebook.

For media giants, facebook doesn't need to make money, it just has to be able to advertise the media giants other products, and if it is capable of doing so it would save them billions in the long term, with a chance that they can corner a market of young peoples who don't use other media outlets.

Morgan Stanley being investigated for sharing information with its "institutional investors" and now I guess , according to CNN breaking news, shareholders are suing just about anyone they can, Zuckerberg, FB, Morgan Stanley for concealing information regarding the IPO.

I wish I saw this thread before. I told everyone to stay away. That the stock would tank. Facebook, while far superior in terms of presentation, user quality, interface, and control than myspace was, will eventually be overtaken by the next best thing in internet communication. Be it AOL, Yahoo, Myspace, etc. all these internet service related somethings end up being surpassed by the newer, cooler trend setter. That's just my non-scientific, non-numbers based opinion.

I personally like Facebook for what I use it for. To keep in touch with friends and family. It's nice to see them with families now, or talk to my friends and family overseas. Pictures of parties they went to, or nights out. It's good for that. What I don't do, and think is really indicitive of modern society, is post the minute to minute play by play of my life. Like "took a dump, now nap time" or "off to work". Someone needs to tell those people no one cares.